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Income Taxes | 12 Months Ended
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Dec. 31, 2023
Income Taxes [Abstract] |
Income taxes |
16. | Income taxes
The Company is subject to Income Tax (ISR). The analysis of the income tax charged to the results of 2023, 2022 and 2021 is as follows:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Income tax of the year for Mexican companies |  | $ | 1,291,378 |  |  | $ | 2,549,851 |  |  | $ | 2,564,312 |
Income tax year for foreign companies |  |  | 403,436 |  |  |  | 599,940 |  |  |  | 1,253,895 |
Deferred tax for Mexican companies |  |  | (40,943 | ) |  |  | (119,999 | ) |  |  | (96,453 | )
Deferred tax for foreign companies |  |  | 86,127 |  |  |  | 269,730 |  |  |  | 668,015 |
|  | $ | 1,739,998 |  |  | $ | 3,299,522 |  |  | $ | 4,389,769 |
During 2023, 2022 and 2021, the income tax expense (benefit) attributable to income was different from the one that will result for applying 30% (tax rate in Mexico) before these provisions, as a result of the items shown below:
|  | 2023 |  |  | 2022 |  |  | 2021 |
Expected benefit, expense |  | $ | 1,804,233 |  |  | $ | 3,348,174 |  |  | $ | 4,150,690 |
Increase (decrease) as a result of: |  |  |  |  |  |  |  |  |  |  |  |
Inflation effect, net |  |  | (581,549 | ) |  |  | (524,640 | ) |  |  | (577,234 | )
Impact of the nominal rate differences between the USA and Mexico |  |  | 112,377 |  |  |  | 29,996 |  |  |  | 66,343 |
Benefit from utilization of tax loss carry-forwards and others (1) |  |  | 342,202 |  |  |  | 80,166 |  |  |  | (12,086 | )
Others, net (includes permanent items) Income tax expense |  |  | 62,735 |  |  |  | 365,826 |  |  |  | 762,056 |
Income tax expense |  | $ | 1,739,998 |  |  | $ | 3,299,522 |  |  | $ | 4,389,769 |
Effective tax rate |  |  | 28.93 | % |  |  | 29.56 | % |  |  | 31.73 | %
(1) | This amount corresponds to the income tax benefit obtained by those companies that used tax loss carry-forwards in the years presented that were generated previously to 2023, 2022 and 2021, less the effect of tax losses incurred by some subsidiaries for which no deferred tax asset was recorded.
The Company has tax losses in some Mexican subsidiaries which, according to the ISR law in Mexico, can be amortized to reduce taxable income generated over the following ten years. Tax losses can be updated following certain procedures established in the law. As of December 31, 2023, Grupo Simec, S.A.B. de C.V. and certain of its Mexican subsidiaries have updated tax losses pending of amortize as follows:
Origin Date |  |  | Expiration Date |  |  | Tax losses available |
| 2014 |  |  |  | 2024 |  |  |  | 4,307 |
| 2015 |  |  |  | 2025 |  |  |  | 7,755 |
| 2016 |  |  |  | 2026 |  |  |  | 428,832 |
| 2017 |  |  |  | 2027 |  |  |  | 252,162 |
| 2018 |  |  |  | 2028 |  |  |  | 15,464 |
| 2019 |  |  |  | 2029 |  |  |  | 1,044,870 |
| 2020 |  |  |  | 2030 |  |  |  | 521,031 |
| 2021 |  |  |  | 2031 |  |  |  | 854,241 |
| 2022 |  |  |  | 2032 |  |  |  | 1,059,003 |
| 2023 |  |  |  | 2033 |  |  |  | 708,322 |
|  |  |  |  |  |  |  | $ | 4,895,987 |
As of December 31, 2023, Republic has USD$ 316.1 million of tax loss carryforwards for federal tax purposes, of which USD$ 196.7 million expires between 2033 and 2038; USD$ 119.4 million of tax loss carryforwards expire indefinitely. USD$ 280.1 million of losses for state and municipal purposes that expire between 2022 and 2040 approximately. USD$ 6.6 million of tax losses in the company located in Canada, which expire between 2032 and 2040. Below is a summary of the effects of the main temporary items that make up the deferred income tax liability included in the consolidated statement of financial position:
|  | December 31, |
|  | 2023 |  |  | 2022 |
Deferred tax assets: |  |  |  |  |  |
Allowance for doubtful accounts |  | $ | (68,211 | ) |  | $ | (67,930 | )
Advances from customers |  |  | 208,805 |  |  |  | 464,268 |
Total deferred tax assets |  |  | 140,594 |  |  |  | 396,338 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Property, plant and equipment |  |  | 3,442,332 |  |  |  | 4,209,513 |
Intangible assets from Grupo San |  |  | 399,050 |  |  |  | 381,282 |
Provisions |  |  | 77,604 |  |  |  | 17,199 |
Prepaid expenses |  |  | 45,294 |  |  |  | 11,493 |
Total deferred tax liabilities |  |  | 3,964,280 |  |  |  | 4,619,487 |
Deferred tax liabilities, net |  | $ | 3,823,686 |  |  | $ | 4,223,149 |

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